By the end of 2020 it became apparent that market pricing for acquisitions had fallen outside of Bear’s underwriting parameters. The consensus within Bear was that it was a strategic time to sell assets. A decision was made to sell Bear’s entire portfolio and wait for a more favorable acquisition environment. The sale of Bear’s portfolio closed during 2021 and generated a 43% IRR and a 2X ROC. The decision to sell in 2021 proved prescient. The sale allowed Bear to avoid debt and cap rate expansion in 2022 that severely degenerated asset values.

Bear has recently focused on the asset management of distressed multifamily properties while waiting for a more favorable acquisition environment. Bear’s seasoned leadership and prior down-cycle experience has facilitated Bear gaining traction in this endeavor. It has been several years since the industry has experienced such widespread value destruction in commercial real estate. Because of that, both borrowers and lenders are understaffed with personnel who have experience in resolving challenges created by the events of 2022. Since 2024, Bear principals have been involved in resolving distressed capital structures and substandard operating results on assets totaling in excess of $1B at acquisition par.